Kuaishou Technology Class B · HKEX:1024
Kuaishou Technology Class B — Q3 2022 Earnings Presentation
25 slides from Kuaishou Technology Class B's earnings presentation, November 2022
Slide 1: 3Q22 Management Presentation
3Q22 Management Presentation November 2022
Slide 2: Disclaimer
Disclaimer By attending the meeting that includes this presentation, or by reviewing the presentation material, you agree to be subject to the following restrictions: The information involved in this presentation has been prepared by the representatives of Kuaishou Technology (the “Company” and toge
Slide 3: Contents
Contents 1 Operational Overview 2 Business Development 3 Financial Results 4 Appendix 3
Slide 4: Operational Overview
Bins Operational Overview 1
Slide 5: Operating metrics highlights
1.1 Operating metrics highlights 363 million 626 million 129 minutes average DAUs on Kuaishou App(1) average MAUs on Kuaishou App(1) average daily time spent per DAU(1) (2) 23.48 billion 2+ million RMB 222.5 billion pairs of mutual followers(3) creators with more than 10,000 followers(4) e-commerce
Slide 6: China's 3rd largest app: strong traffic growth with user time spent reaching a new high
1.2 China’s 3rd largest app(1) : Strong traffic growth with user time spent reaching a new high • Achieved strong growth in user scale and total traffic during the peak season of user and traffic growth, through optimizations of content, algorithms and operations • Average DAUs amounted to 363 milli
Slide 7: Business Development
Bins Business Development 2
Slide 8: Thriving creator ecosystem with rich supply of content verticals
2.1 Thriving creator ecosystem with rich supply of content verticals • Kuaishou is committed to building and maintaining a community with inclusiveness as its foundation, and characterized by strong interactions and deep engagements, providing users with a vast amount of quality content, thereby est
Slide 9: Online marketing services
2.2 Online marketing services With the online marketing industry under short-term pressure, we continued to implement multiple initiatives optimize advertising products and service capabilities, to gain more opportunities and budget allocations when consumption recovers Revenue from online marketing
Slide 10: E-commerce business performance and core strategies
2.3 E-commerce business performance and core strategies • The growth rate of E-commerce outpaced the market and continued to gain market share. E-commerce GMV reached RMB222.5 billion, up 26.6% YoY GMV1 Core strategies (RMB million) Build out a merchandise system and add cost-effectiveness evaluatio
Slide 11: Continued supply and consumption prosperity in the e-commerce ecosystem
2.3 Continued supply and consumption prosperity in the e-commerce ecosystem Widened coverage QoQ of user ~80% interest protection system including Trusted Purchase Repeat purchase rate increased by 1.1 ppts YoY YoY increase of new merchants joining Kuaishou platform in 3Q Number of monthly active e-
Slide 12: Strengthening brand e-commerce
2.3 Strengthening brand e-commerce Brought in more well-known brands and launch Super Brand Day. Continue to foster “Kwai brands”. The number of Kwai brands grew by During 818, brand GMV increased by 192% YoY high double-digits QoQ in Q3, accounting for an increasingly share of e-commerce GMV • Kuai
Slide 13: Live streaming performance exceeded expectations
2.4 Live streaming performance exceeded expectations, with continuous expansion of contextualized live streaming usage scenarios • Live streaming revenue increased by 15.8% YoY to RMB8.95 billion, with better resilience and growth momentum from our low-threshold and all-inclusive live streaming busi
Slide 14: Financial Results
Bins Financial Results 3
Slide 15: Financial highlights
3.1 Financial highlights The Group’s adjusted EBITDA for 3Q22 was RMB1.02 Adjusted EBITDA was positive for the second billion, turning positive from a loss in the same period of consecutive quarter 2021, and increasing by 151% QoQ Operating profit for domestic business for 3Q22 was Domestic business
Slide 16: Healthy revenue growth, continuous gross margin improvement
3.2 Healthy revenue growth, continuous gross margin improvement • Total revenues for 3Q22 grew by 12.9% YoY. 50.1% of the revenues was from online marketing services, 38.7% from live streaming and 11.2% from other services • In 3Q22, revenue from online marketing services grew by 6.2% YoY, revenue f
Slide 17: Consistent cost controls and efficiency improvements led to stable operating expenses
3.3 Consistent cost controls and efficiency improvements led to stable operating expenses • Selling and marketing expenses as a percentage of revenue decreased by 14.3 ppts YoY and 0.9 ppt QoQ to 39.5%; Slightly QoQ increase was due to the increased acquisition costs during the peak user-growth seas
Slide 18: Domestic profit grew, overseas investments remained steady
3.4 Domestic profit grew, overseas investments remained steady • Domestic operating efficiency and profit continued to increase. It is profitable for the second consecutive quarter, achieving an operating profit of RMB375 million • Revenue from overseas business increase 83.5% QoQ, with operating lo
Slide 19: The Group's loss continued to narrow
3.5 The Group’s loss continued to narrow • Our group’s operating loss continued to narrow, with operating profit margin up 24.8 ppts YoY and 2.8 ppts QoQ • Adjusted net loss narrowed significantly YoY. Adjusted net profit margin improved by 19.6 ppts YoY and 3.1 ppts QoQ RMB million Operating profit
Slide 20: Thank You!
IR Contacts Kuaishou Technology Thank You! Investor Relations Email: ir@kuaishou.com
Slide 21: Appendix
Bins Appendix 4
Slide 22: Income Statement
Income Statement RMB million 2021Q3 % of revenue 2022Q2 % of revenue 2022Q3 % of revenue YoY change QoQ change Revenues 20,493 100.0% 21,695 100.0% 23,128 100.0% 12.9% 6.6% Cost of revenues (11,984) (58.5%) (11,925) (55.0%) (12,425) (53.7%) 3.7% 4.2% Gross profit 8,509 41.5% 9,770 45.0% 10,703 46.3%
Slide 23: Income Statement
Income Statement Nine months ended Nine months ended RMB million % of revenue % of revenue Change September 30, 2021 September 30, 2022 Revenues 56,651 100.0% 65,890 100.0% 16.3% Cost of revenues (32,770) (57.8%) (36,635) (55.6%) 11.8% Gross profit 23,881 42.2% 29,255 44.4% 22.5% Selling and marketi
Slide 24: Adjusted net loss and Adjusted EBITDA
Adjusted net loss and Adjusted EBITDA Nine months ended Nine months ended RMB million 2021Q3 2022Q2 2022Q3 September 30, 2021 September 30, 2022 Net loss (7,087) (3,176) (2,712) (71,874) (12,142) Add: SBC 2,265 1,718 1,708 6,088 5,137 Fair value changes of preferred shares - - - 51,276 - Net fair va
Slide 25: Balance Sheet
Balance Sheet September 30, December 31, September 30, December 31, RMB million RMB million 2022 2021 2022 2021 ASSETS EQUITY AND LIABILITIES Non-current assets Share capital 0.145 0.142 Property and equipment 11,685 11,051 Share premium 274,448 274,408 Right-of-use assets 9,519 12,562 Other reserve